In managed care, capitation refers to the fact that certain medical and mental health services must be authorized ahead of time; otherwise the managed care organization won't pay for them.

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Capitation is a payment arrangement for health care service providers such as physicians, clinics, and hospitals. It means they are paid a set amount for each enrolled person assigned to them, per period of time, whether or not that person seeks care.

In Managed Care, Capitation Refers to the Fact That Certain